SunGard's hottest stocks
16 July 2015 Global
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SunGard’s Astec Analytics has compiled the hottest stocks from around the globe for the week beginning 6 July 2015.
The Irish budget airline Ryanair Holdings (RYA.L) is Astec’s top pick for the Europe, Middle East and Africa region after it agreed to sell its stake in Aer Lingus to International Consolidated Airlines Group.
The company's shares made strong gains on the back of the news—with shareholders expecting to benefit from the cash generated by the sale—while on the borrowing front Astec has identified some early signs that short sellers may be of a similar mind; the number of shares being borrowed falling 36 percent during the week.
CNH Industrial NV (CNHI) has also, once again, made its way into Astec’s list after it signed a four-year labour deal with carmaker Fiat Chrysler, which looks set to improve relations with trade unions.
Astec commented: “The news helped spur some gains in the cash market, though our data still hints at short sellers holding on to their positions in hopes of a retracement—borrowing volumes currently 15 percent higher than this time last month.”
In the Americas, US tech goliath Apple (AAPL) has seen focus after a research report suggested sales of its smart watch plunged 90 percent since the opening week, and are far below expectations for the first three months.
While its shares have been seeing a fairly volatile month in July, Astec's data has suggested short selling activity has continued to decline steadily for more than two months. In July so far, the number of Apple shares being borrowed has fallen 15 percent.
Elsewhere, Chesapeake Energy (CHK) has entered Astec’s list after a federal judge in Manhattan ordered the company to pay $379.7 million to bond investors in connection with a dispute over a March 2013 redemption notice.
The news brought about a bad ending to what Astec has called a “fairly buoyant” week in the cash market for the company, though its data does suggest demand to short sell the stock has been growing rapidly in July—the cost of borrowing climbing from around 3 percent at the start of the month to almost 20 percent by the end of the week.
Brilliance China Automotive Holdings (1114.HK), Chinese business partner of Europe's BMW, is Asetc’s top pick for the Asia Pacific region after it issued a profit warning, suggesting the number would be about 40 percent lower than the same period last year due to higher selling costs incurred because of slowing growth in China.
Brilliance's shares have been seeing some volatile trading in the cash market in recent weeks, according to Astec, while on the borrowing front its data has suggested short selling activity may now be seeing a turnaround, with the number of shares borrowed falling 20 percent in the week.
Finally, Guotai Junan International Holdings (1788.HK) has made its debut in Astec’s list after its securities arm received approval to undertake one of mainland China's largest initial public offerings—expected to raise as much as $4.8 billion.
The news brought about a 50 percent increase in the price on the Hong Kong exchange, though Astec's data does hint at increased short selling activity in recent months as the stock had previously been losing ground.
During the week alone, borrowing volumes more than doubled to over 60 million shares.
The Irish budget airline Ryanair Holdings (RYA.L) is Astec’s top pick for the Europe, Middle East and Africa region after it agreed to sell its stake in Aer Lingus to International Consolidated Airlines Group.
The company's shares made strong gains on the back of the news—with shareholders expecting to benefit from the cash generated by the sale—while on the borrowing front Astec has identified some early signs that short sellers may be of a similar mind; the number of shares being borrowed falling 36 percent during the week.
CNH Industrial NV (CNHI) has also, once again, made its way into Astec’s list after it signed a four-year labour deal with carmaker Fiat Chrysler, which looks set to improve relations with trade unions.
Astec commented: “The news helped spur some gains in the cash market, though our data still hints at short sellers holding on to their positions in hopes of a retracement—borrowing volumes currently 15 percent higher than this time last month.”
In the Americas, US tech goliath Apple (AAPL) has seen focus after a research report suggested sales of its smart watch plunged 90 percent since the opening week, and are far below expectations for the first three months.
While its shares have been seeing a fairly volatile month in July, Astec's data has suggested short selling activity has continued to decline steadily for more than two months. In July so far, the number of Apple shares being borrowed has fallen 15 percent.
Elsewhere, Chesapeake Energy (CHK) has entered Astec’s list after a federal judge in Manhattan ordered the company to pay $379.7 million to bond investors in connection with a dispute over a March 2013 redemption notice.
The news brought about a bad ending to what Astec has called a “fairly buoyant” week in the cash market for the company, though its data does suggest demand to short sell the stock has been growing rapidly in July—the cost of borrowing climbing from around 3 percent at the start of the month to almost 20 percent by the end of the week.
Brilliance China Automotive Holdings (1114.HK), Chinese business partner of Europe's BMW, is Asetc’s top pick for the Asia Pacific region after it issued a profit warning, suggesting the number would be about 40 percent lower than the same period last year due to higher selling costs incurred because of slowing growth in China.
Brilliance's shares have been seeing some volatile trading in the cash market in recent weeks, according to Astec, while on the borrowing front its data has suggested short selling activity may now be seeing a turnaround, with the number of shares borrowed falling 20 percent in the week.
Finally, Guotai Junan International Holdings (1788.HK) has made its debut in Astec’s list after its securities arm received approval to undertake one of mainland China's largest initial public offerings—expected to raise as much as $4.8 billion.
The news brought about a 50 percent increase in the price on the Hong Kong exchange, though Astec's data does hint at increased short selling activity in recent months as the stock had previously been losing ground.
During the week alone, borrowing volumes more than doubled to over 60 million shares.
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